Commenting on the report, an analyst from Technavios team said: One trend which is influencing the market is the shift towards satellite based navigation. With a new generation of air traffic management (ATM) systems being planned and implemented around the world, there has been a significant shift in the ATM systems market. This is from ground based hardware to airborne based technology and a more software centric approach to integrated automated ATM networks. To ensure safety and attain efficient operations, ground based augmentation system (GBAS) is the effective solution.

According to the report, a key growth driver for the ATC equipment market is the growing air traffic and new aircraft deliveries. In 2014, there was 17,354 aircraft in operation, which is likely to be replaced by 31,781 aircraft in the next 20 years. India, particularly, had a passenger traffic of over 61.42 million in 2013, and it is likely to have 367 million passengers by 2034. It is also expected to have more than 800 aircraft by 2020, which will simultaneously increase the air traffic in the country. Similarly, according to the IATA, airports in Qatar, the UAE, Oman, and Kuwait are together expected to handle approximately 400 million passengers per year by 2020.

Further, the report states that one challenge that could restrict market growth is high user and labor costs.